The Alberta real estate market started 2016 with some change compared to last year in 2015. According to the Alberta Real Estate Association, the number of residential units sold in January was down compared to the same period last year. Experts say that the decrease was due to the response of home buyers to the uncertainties with regards to the economy.
As seen in the January Residential Sales chart, 2,277 homes were reported as sold via the MLS Systems of real estate associations and boards in Alberta. The number was down from 2,642 or 13.8 percent from the same time last year. In the last six years, the number of homes sold for the month of January peaked in 2014, with 3,681 units sold.
The Alberta Real Estate Association also released a chart showing the January Average Price in Alberta. The chart showed that there was a decrease of 2.7 percent in the average residential price compared to the homes for sale prices in January of 2015. The average price for homes in Alberta in January was $371,620, which was down from $381,758 of January 2015.
Top 10 Real Estate Boards and Associations in Alberta
A look at the top real estate boards and associations list and you’ll see that only three boards/associations increased the average price of homes for sales. These are the Alberta West, Fort McMurray Region, and the Calgary Region. The remaining boards/associations saw a drop in their residential average price in January. These are Lethbridge Region, Grande Prairie Region, Central Alberta, Medicine Hat Region, Edmonton Region, Lloydminster Region, and South Central Alberta.
Another interesting point from the AREA report is the increase in the months of inventory. There were 8,559 new listings on the MLS Systems of real estate boards/associations in Alberta in January, which was 8.5 percent lower compared to the same month last year. However, active residential listings were 22,362 units, which is an increase of 15.1 percent from last year.
As seen in the report, there is a low demand for homes for sale in Alberta, which resulted to an increase in the inventory. Unemployment remained one of the major economic factors that affect real estate market in the province. But even if the prices have dropped, they remain stable. And the increase in the inventory can lead better opportunities for home buyers. And with low-interest rates, industry experts expect the Alberta real estate market to grow in the upcoming buying season in spring.
These were also an increase in the average number of days on market for properties in Alberta. It shows that buyers are not in the hurry when purchasing a new residential property. Clients are taking their time, and discussing options with their realtors before they finalize their purchase.
For more information please visit Alberta Real Estate Association.
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